Delivery workers at Indian grocery delivery platform ‘Blinkit’ go on strike against pay revision

Delivery partners of the quick-delivery company are demanding that a new pay structure, which will reportedly substantially reduce their current incomes, be immediately rescinded

April 18, 2023 by Peoples Dispatch
Blinkit workers protest India
(Photo: via The Mooknayak)

A new pay scheme introduced by Blinkit, a quick-delivery grocery unit under one of India’s largest food delivery platforms Zomato, has sparked protests by delivery workers across several cities in the country. 

Discussions with labor department have failed to address the key issue of pay revision.

Over the past week, protests by Blinkit delivery partners were reported in Kolkata, Hyderabad, Pune, and national capital New Delhi. In videos shared via social media, protestors can be seen burning effigies of the quick-commerce platform and holding placards against it. They are demanding that the new pay structure be immediately rescinded, which will reportedly reduce their current incomes upon implementation.

Zomato bought Blinkit in 2022 for US$ 550 million.

The new payout introduced on Monday, April 10, midnight has dropped per delivery rate from Rs 25 (US$ 0.30) to Rs 15 (US$ 0.18), sources told NewsClick. The previous structure had a defined base payment with incentives according to the distance traveled by the partner to deliver the order. In the new payout system, however, there is no base payment. The partner will only be paid per kilometer of travel to deliver the orders, for which the rate ranges between Rs 9 (US$ 0.11) to Rs 12 (US$ 0.15), which can increase to Rs 15 with an additional bonus.

The delivery workers of the aggregator app, who are called as “delivery partners” or “delivery executives” by the company, are angry about the loss of their basic income at a time when inflation is soaring at 5.6%. 

The protest by delivery partners has affected the services of the platform, shutting down at least 50 supply stores in the national capital.

This is the second cut in the payment structure of delivery partners since July 2022 when the company had revised the pay-per-delivery from Rs 50 (US$ 0.61) to Rs 25 (US$ 0.30). With the latest revision, not only will the new pay per delivery rate fall from Rs 25 to Rs 15, but the workers also stand to lose additional incentives like weekly fuel payouts.

According to a Blinkit delivery partner from the National Capital Region (NCR) who wished to remain anonymous, the new payout system would significantly reduce his income. He joined the platform as a delivery partner three years ago after losing his job as a sales manager.

“That time, we did not protest as we did not have enough support and even with Rs 25, we received a considerable amount in hand. However, with this new system, it will be impossible for us to survive this high inflation,” he told NewsClick.

India’s gig economy has been expanding at an unprecedented rate in recent years. In 2020 , the gig workforce comprised 7.7 million workers, which is expected to rise to 23.5 million workers by 2029-30.

However, gig workers have frequently taken to the streets to highlight poor working conditions and low wages at their jobs. In September 2022, massive protests were held by delivery partners of Swiggy, another online food delivery platform in India. The protests were held in several parts of the country against low wages, cuts in benefits, and increased number of working hours.

 


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